The home improvement contractor scam known as the "Traveler" has been around for decades, and consumer advocate Courtney Yelle estimates that they bilk consumers out of more than $20 million annually. Since home improvement contractors often work out of their vehicles, this scam can appear quite benevolent at a glance, especially since professional scam artists don 't seen like solicitors first. But once you fall for the Traveler 's scam, you could wind up losing thousands of dollars. This home improvement contractor scam seems pretty innocent at first. You 're doing chores around the house on a lazy Saturday afternoon when your doorbell rings. You answer to find a clean-cut, well-dressed workman standing at your door. He says that he 's noticed
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Never pay a home improvement contractor unless you 've met in person and developed a reasonable contract. You should also be able to get references of other people for whom they 've done work. One of the best ways to guarantee a great job on the project is to ask to physically see work they 've done on a neighbor 's house. This ensures that you aren 't being set up with someone who 's involved in the scam. Another thing you should remember is that you can 't rely on the talented-looking contractor with whom you first meet. Most contractors use subcontractors to do the majority of their work, and you never know if they are qualified. In one variation of the Traveler, the solicitor will want you to arrange for financing with a lender he knows who will approve just about anyone. You 'll get charged exorbitant interest rates -- in addition to other hidden costs -- and the contractor is paid a portion of the profit the lender makes. His subcontractors won 't know what they 're doing and you 'll have to get the work repaired in addition to paying off the loan. The moral of the story is that you have to watch out for home improvement contractor scams. The Traveler isn 't the only one out there, so make sure you have proper references and a reasonable contract before you shell out
Never pay a home improvement contractor unless you 've met in person and developed a reasonable contract. You should also be able to get references of other people for whom they 've done work. One of the best ways to guarantee a great job on the project is to ask to physically see work they 've done on a neighbor 's house. This ensures that you aren 't being set up with someone who 's involved in the scam. Another thing you should remember is that you can 't rely on the talented-looking contractor with whom you first meet. Most contractors use subcontractors to do the majority of their work, and you never know if they are qualified. In one variation of the Traveler, the solicitor will want you to arrange for financing with a lender he knows who will approve just about anyone. You 'll get charged exorbitant interest rates -- in addition to other hidden costs -- and the contractor is paid a portion of the profit the lender makes. His subcontractors won 't know what they 're doing and you 'll have to get the work repaired in addition to paying off the loan. The moral of the story is that you have to watch out for home improvement contractor scams. The Traveler isn 't the only one out there, so make sure you have proper references and a reasonable contract before you shell out